Analysis of SuperValu (SVU) annual report

2. According to KPMG LLP, the financial statements (including the statement of cash flows) were prepared in accordance with generally accepted accounting principles as practiced in the USA. KPMG LLP believes that the company does not appear to have deliberately misrepresented its financial position (SuperValu, 2000, p. 32).

3. The external audit verifies that the procedures used to develop financial information issued by the company are valid and in keeping with standard accounting and control practices. External auditors look for irregularities in reporting practices or in the way in which inventory is handled (for example) to determine that the information on financial statements is fundamentally valid. External audits do not verify the accuracy of the financial statements themselves, but merely validate that the procedures used to produce those statements are in keeping with standard practice (SuperValu, 2000, p. 32).

4. When an auditor prepares a report stating that the financial statements have been prepared in accordance with generally accepted accounting principles, the auditor is telling the company (and its shareholders) that the financial statements are most likely an accurate representation of the company's financial position. If an audit report states that there are irregularities, the company cannot depend on its financial statements to reflect acc

. . .
alculated by taken the company's value of common stock and paid-in capital ($282,896,000) (SuperValu, 2000, p. 21) and dividing by the number of shares issued (130,090,000) (SuperValu, 2000, p. 34) yielding an average price of $2.17461757. 11. Information from the company's financial statements is summarized below (SuperValu, 2000, pp. 18-23) and used in the calculation of financial ratios. Balance Sheet ($Thousands) 2000 1999 Cash 10,920 7,608 A/R 562,448 410,799 Inventory 1,490,454 1,067,837 Other Current Assets 113,817 96,283 Current Assets 2,177,639 1,582,527 PPE (gross) 3,477,649 2,920,412 PPE (net) 2,168,210 1,699,024 Other 2,149,504 984,398 Total Assets 6,495,353 4,265,949 Notes, A/P 2,006,825 1,071,118 Current Portion LT Debt 170,381 208,913 Accrued Compensation 128,875 96,161 Other Current 203,539 145,715 Current Liabilities 2,509,620 1,521,907 LT Debt 1,408,858 835,485 Other Liabilities 755,396 602,918 Total Liabilities 4,673,874 2,960,310
. . .

Some common words found in the essay are:
Dun Bradstreet, SuperValu Inc, KPMG LLP, Flows SuperValu, Return Equity, Additions PPE, SuperValu SuperValu, LT Debt, supervalu 2000, Current Assets, Net Income, financial statements, dun bradstreet, debt equity, debt equity ratio, preferred stock, cash flows, equity ratio, times earned, 2000 23, supervalu 2000 23, supervalu 2000 32, dun bradstreet 2000, bradstreet 2000, bradstreet 2000 134,
Approximate Word count = 1520
Approximate Pages = 6 (250 words per page)